European regulation poses threat to affordability of property funds to UK investors, trade bodies warn. A major piece of European regulation could lead to spiraling costs for ‘bricks and mortar’ property funds, according to trade bodies.
Both the IMA, the fund management trade body, and the Association of Real Estate Funds (Aref) have warned that the Alternative Investment Fund Managers directive (AIFMD), which is expected to come into force next summer, will raise costs for mainstream direct property funds……………………………………….Full Article: Source

Total returns of European non-listed property funds dropped into negative in the second quarter, down 0.3% and reversing the positive 0.5% performance in 1Q12, says the funds association INREV. Most weakness came from fund exposure to southern Europe.
Multi-country fund performance slid to -1.1% from 0.4% in 1Q12, with capital growth turning even more negative, at -1%, and continental Europe back in negative territory at -0.4% after 0.5%. For single-country funds, Italy was the worst performer in 2Q12, with total returns of -0.4%, even though this was an uplift from -0.9% in first quarter………………………………………..Full Article: Source

Poland and the Czech Republic accounted for 90% of the EUR 1.25 bn of commercial real estate investment in Central and Eastern Europe during the first half of 2012.
Investment activity was centred on the capital cities. The largest transaction in Poland was the acquisition of CBRE GI and AXA Real Estate of a majority stake in the Zlote Tarasy mixed-use centre in Warsaw for EUR 475 mln. US-based firm L88 Companies acquired the Radio Free Europe-Hagibor office building in Prague for about EUR 75 mln in the largest transaction in the Czech Republic………………………………………..Full Article: Source

Location will remain the most important factor when investors and occupiers make decisions about office space, according to Jones Lang LaSalle Offices 2020 research.
Whilst cost and the quality of available space are rapidly rising up the agenda, location will continue to outweigh these concerns and become even more important. We expect to see rental premiums for location of up to 70% commonplace in many Western European countries………………………………………..Full Article: Source

Some of the most sought-after commercial real estate in Europe these days is also the most unglamorous: warehouses and industrial space.
Although values of industrial properties have been slower to recover in recent years than office buildings, shopping malls and other commercial-property types, investors are attracted to industrial buildings because the rent paid by tenants has been stable, thanks to long-term leases, and that produces strong income for owners………………………………………..Full Article: Source

The number of Russians buying holiday homes abroad has been increasing tremendously over recent years. A few years ago, just the wealthy Russians had the funds to buy houses outside the former Soviet Union, but today, a host of middle-class people are finding it appealing to secure sea-side homes abroad, even though there is every chance of incurring a debt.
Property abroad is considered as an investment by many buyers, and the drop in real estate prices due to the Euro zone’s financial crisis in countries such as Cyprus, Spain, Portugal and France has seen a large number of Russians invest in these markets, believing that rates will eventually rise………………………………………..Full Article: Source

New shopping centre development in Europe is expected to increase by a quarter in 2012 to meet retailer demand for modern, high quality retail space, according to the latest research by global property advisor CBRE.
CBRE’s Shopping Center Stock in Europe research examines existing shopping centres and those under construction in Europe of 10,000 square meters and above. This represents the vast majority of centre in which international retailers are located or would like to be located………………………………………..Full Article: Source

European real estate investors are so spooked by the region’s sovereign debt crisis that a blinkered focus on the best neighborhoods of London, Paris and Berlin means they are missing dramatically better deals in far-flung locations.
While the most popular districts of Europe’s financially strongest cities are the safest bet given the markets’ resilience, elsewhere there is much more money to be made on high-yielding assets with stable tenants on long leases………………………………………..Full Article: Source

European logistics real estate investment made up ground in the second quarter of 2012 when EUR 2.2 bn was invested in logistics and industrial assets, according to the latest data from Jones Lang LaSalle. The result reflects a 56% increase compared to the relatively slow first quarter.
Nevertheless, half year volumes were still down 20% on the equivalent period last year (H1 2011)………………………………………..Full Article: Source

Savills has said it expects European property markets to remain unsettled and very subdued in countries like Italy and Spain, as it posted a four per cent fall in first-half group profit before tax.
The property consultancy said yesterday that underlying profit before tax fell to £19.7m in the six months to June, down from £20.6m in the same period last year. Group revenue rose five per cent to £353.3m………………………………………..Full Article: Source

New shopping center development in Europe is expected to increase by a quarter in 2012 to meet retailer demand for modern, high quality retail space, according to the latest research by global property advisor CBRE.
CBRE’s Shopping Center Stock in Europe research examines existing shopping centers and those under construction in Europe of 10,000 m² and above. This represents the vast majority of centers in which international retailers are located or would like to be located………………………………………..Full Article: Source

Risk aversion remains the dominant theme across European property markets, according to LaSalle Investment Management’s mid-year update. The report shows that the divide between the most sought after leased properties in major markets, and nearly everything else, is wider than ever.
Risk aversion and flight to safety have risen to much higher levels with the price on core and super core real estate increasing over the last six months……………………………………….Full Article: Source

The eurozone crisis has garnered yet another victim – this time the investment real estate market in central and eastern Europe, which slumped in the first half of the year.
For the region as a whole, investment in the second quarter of the year came to only €327m, down from €834m in the first quarter, according to DTZ, a real estate company. Overall, activity for the first half of the year was down 47 per cent over the same period in 2011………………………………………..Full Article: Source

Warsaw and Prague remain the most attractive real estate investment markets in Central and Eastern Europe, with prime office yields in both cities steady at 6.25% during the second quarter of 2012, property adviser DTZ said in its latest investment update for the region.
The Polish and Czech markets continued to dominate real estate investment in CEE in the period from April to end-June as investment slowed down significantly across the region due to the ongoing economic uncertainty in Europe………………………………………..Full Article: Source

Following a record investment year in 2011, transactions in Slovakia were always going to be down in 2012 with a quiet first half 2012. Transaction activity is expected during 2H 2012. Investment activity in Czech Republic in the first six months of 2012 (256 million EUR) fell by 60% when compared to the same period of last year (626 million EUR), but is still 40% above the volume achieved in 2010.
Foreign investors were the key driver of the market, taking the lion’s share of deal volume (87%) in the Czech Republic and 48% in Europe. European commercial property investment markets proved quite resilient in the second quarter, with volumes totalling 29.2 billion EUR, 8% up on Q1. ……………………………………….Full Article: Source

Investment in commercial property in Europe experienced a major increase from the period between April and June, after having fallen in the past couple of months due to the sovereign debt crisis that is currently ongoing.
The latest surveys on capital markets conducted by Jones Lang La Salle suggest that the volumes of investment have increased by 17 per cent from the past quarter. About 40 per cent of these investments have been made by foreign investors………………………………………..Full Article: Source

According to the latest report from global real estate advisor CBRE, investors in European retail property continue to focus on quality assets, with a number of major High Street transactions taking place in the second quarter of 2012 (Q2 2012).
The deals highlight the strength of demand for core retail as evidence of weakness in secondary retail segments comes to the fore………………………………………..Full Article: Source

Despite the ongoing Eurozone crisis, real estate investment activity increased in the second quarter of 2012, with cross-border investors driving volume in the major markets, according to Jones Lang LaSalle’s latest capital markets survey. Cross-border transactions accounted for 40% of volumes which rose overall by 17% compared to Q1 2012 to EUR 27 bn.
However, there were limited transactions in Southern Europe and most cross-border deals were focused on a narrow range of geographies and assets………………………………………..Full Article: Source

Despite a worsening short-term economic outlook for much of Europe, prime rents and yields for the region’s commercial property remained broadly stable in the second quarter (Q2) of 2012, according to new figures released by CBRE.
Continuing the pattern of the past few quarters, prime yields rose slightly across all three main property sectors, reflecting a degree of investor caution and low transaction activity. However, the changes in yields remain moderate: over the past year, office and industrial yields for the EU-15 area are just 12 basis points higher………………………………………..Full Article: Source

Commercial real estate investment activity increased significantly in the UK and France in the second quarter of 2012, as investors sought the most liquid markets at a time of further financial uncertainty, according to the latest research by global property adviser CBRE.
Investment turnover in the European commercial real estate market showed a further slight downturn in the period, falling to EUR 24 bn from the EUR 27 bn recorded in the first quarter………………………………………..Full Article: Source

UK property businesses are hunting for bargains in the country’s battered real estate market, encouraged by heavy discounts that show how the euro zone crisis has hit confidence in the sector, Lloyds Banking Group said on Friday.
Data from the bank’s quarterly Commercial Property Confidence Monitor showed the net balance of major businesses intending to make purchases in the next six months rose to 57 in May, from 52 in February, while the net balance of fund managers keen to invest rose to 38 from 36 over the same period………………………………………..Full Article: Source

This September, work starts on a development of 22 homes around a Chinese-style courtyard, pavilion and pond. Enclosed by high white walls, it will have Chinese symbols adorning an entrance gate topped with a roof reminiscent of a Far Eastern temple.
It is being built not in China but Fuenlabrada, an industrial suburb 17 miles south of Madrid, the capital of debt-ravaged Spain where thousands of construction projects have stopped in their tracks………………………………………..Full Article: Source

The recent deepening of the eurozone crisis has had a negative impact on prime rents and yields in European commercial property markets, new research from property adviser Knight Frank confirms.
The Summer 2012 European Market Indicators quarterly report shows that although values were stable in the majority of European cities during the last quarter, a small number of markets saw rents fall or yields soften………………………………………..Full Article: Source

According to the latest data from CBRE, the leading global real estate consultancy, commercial property investment volumes in Central and Eastern Europe (CEE) were 60% lower in the first half of 2012 compared to the volume achieved during H1 2011.
Despite the region’s performance and continued uncertainty about the direction in which the Eurozone is heading, combined with a focus on prime assets, investments in Poland and Russia remained strong, with the two countries accounting for 83% of all deal flows in the region………………………………………..Full Article: Source

According to global real estate firm CBRE, continued eurozone uncertainty combined with a focus on prime assets meant that commercial property investment volumes in Central and Eastern Europe (CEE) were 60% lower in the first half of 2012 (H1 2012) when compared to the volume achieved during H1 2011.
Overall commercial property investment volumes in CEE amounted to almost €2.1 billion during H1 2012. The largest transactions across CEE during this period were the sale of Zlote Tarasy in Warsaw from ING Real Estate Development to a fund managed by AXA REIM and a 50% stake in Golden Babilon Rostokino in Moscow - where IMMOFINANZ bought the remaining shares from its co-owner………………………………………..Full Article: Source

German residential real estate is something which most serious investors should consider at the moment according to Sy Schlueter, fund manager of the Copernicus Fund in the latest Opalesque Frankfurt Roundtable sponsored by Eurex which took place at the Deutsche Borse in Frankfurt in June.
Schlueter said, “I have been for 25 years in equities as analyst, strategist, investment manager, but I must say that German residential real estate is still my best idea. I am not too optimistic on equity markets and not optimistic at all on government bonds, not even the so-called safe haven government bonds. For long-term investors, real estate is an asset class one should consider in general, but we all know that many markets bubbled in the last ten or fifteen years. In fact, there are only few real estate markets that have not seen a bubble and in my view only two markets worldwide can be considered substantially undervalued, and these are the German and the Japanese residential real estate market. Finding such an opportunity at our doorsteps, it was obvious that we entered it.”……………………………………….Full Article: Source

Commercial property investment volumes in Central and Eastern Europe (CEE) fell 60% to EUR 2.1 bn in the first half of 2012 compared to the same year-earlier period, according to the latest data from CBRE. The adviser attributed the sharp decline to continuing eurozone uncertainty combined with a focus on prime assets.
The majority of deal flow took place in Russia and Poland, which accounted for 83% of the CEE total………………………………………..Full Article: Source

Investment Property Databank (IPD) has launched transaction-linked indices (TLIs) for the main European markets in a move to better identify the volatility and inherent risk present in European real estate.
Over the last few years, IPD has developed these indices using a hybrid methodology of transaction information and valuation data………………………………………..Full Article: Source

Europe’s real estate financing system has begun the slow evolution towards a more diverse model now that the Continent’s banks are no longer in a position to lend at traditional levels, according to John Feeney, head of commercial real estate debt at Henderson Global Investors.
Real estate loan pricing is highly unpredictable in the ongoing financial crisis and lenders are coming in and out of market from month to month, leaving the EUR 2.5 tln European property lending market in a very poor place, Feeney told a Henderson event in Amsterdam recently………………………………………..Full Article: Source

Total returns on non-listed funds increased slightly to 0.5% in the first three months of 2012 from 0.4% in the previous quarter, according to the latest figures from the European Association for Investors in Non-listed Real Estate Vehicles INREV.
Capital growth remained negative but increased to -0.2% in Q1 2012 from -0.8% in the final quarter of 2011, driven by increased returns in Continental Europe (up at -0.2% from -1.3% over the same period)………………………………………..Full Article: Source

Land Securities and British Land - the two biggest property companies on the London stock exchange - should merge. This is not a new idea. But with returns from even the shiniest offices and jazziest shopping centres now shrinking as property values slide, it is overdue another airing.
I am sometimes asked which company I prefer. One can draw distinctions: British Land has a higher yield, more shops and an ex-banker in the top job; Land Securities is less geared, more development-focused and run by a chartered surveyor………………………………………..Full Article: Source

A shaky European economy has changed the focus of Russians looking to buy property abroad.
While former destinations like the Middle East or Asia have fallen out of favor due to slumping real estate values there, markets that were out of reach to all but the most affluent Russians before the crisis, have become much more affordable and eager to attract foreign buyers………………………………………..Full Article: Source

The majority of European industrial investment markets recorded a quiet start to the year following a flurry of activity in the final quarter of 2011. Notable exceptions were Germany and Poland with the sales of two logistics portfolios sold by Prologis and comprising six properties and two logistics parks in Germany and four properties in Poland, boosting results in the two markets.
As a result, volumes rose 12% on the equivalent quarter last year in Germany while they rose by 37% in Poland in the same comparison………………………………………..Full Article: Source

Praia Da Luz is a tony beach town on Portugal’s southern coast that’s a summer destination for British, Irish, French and Germans. A few years ago, a four-bedroom vacation house in Monte Lemos overlooking the Atlantic would have fetched more than a million euros. Today, you could pick a property like this up for almost 50% less.
Knight Frank currently has a listing for a home within walking distance of downtown and the main beach of Luz that has four en-suite bedrooms with balconies, an in-ground pool and a patio overlooking the water……………………………………….Full Article: Source

According to Eurostat data, real estate provides the second largest untapped cost-effective potential for energy savings among economic sectors in Europe – estimated at 65 million tonnes of oil equivalent (Mtoe), or roughly the equivalent of half the entire annual energy consumption of Italy.
EU research calculates that the costs of achieving the EU’s energy efficiency targets in European real estate would be €587 billion between 2011-2020, or €60 billion a year………………………………………..Full Article: Source

For decades, when this medieval town wanted to borrow for a building project, officials just needed to walk into one of the many banks between city hall and the nearby 13th-century cathedral.
This year, they have had to look farther afield. Unable to raise the money to keep city construction projects on track, Mayor Jean-Pierre Gorges has dispatched aides to Beijing in hopes of negotiating a loan from China Development Bank………………………………………..Full Article: Source

Strong portfolios and benign funding conditions in the relatively low-geared segment of European real estate make for a stable ratings outlook among rated real estate investment trusts (REITs) and developers in the region.
What’s more, these factors should support the creditworthiness of issuers in this industry through 2012, says a report published earlier today titled “Rising Debt Costs And Investment Pipeline Uncertainties Threaten Stability Of European Real Estate Sector.”……………………………………….Full Article: Source

Rents for prime offices remained stable in most major European markets in Q1 2012, with the CBRE EU-27 Prime Office Rent Index edging up by 0.1% during the period.
The stability of CBRE’s index masked modest increases in a handful of European markets, notably in Hamburg (+4.3%) and the Nordic markets, as well as declines in southern Europe and Ireland - reflecting the ongoing effects of the economic difficulties in the eurozone………………………………………..Full Article: Source

Rental level for prime offices remained stable in most major European markets in Q1 2012, with the CBRE EU-27 Prime Office Rent Index edging up by 0.1% during the period.
The stability of CBRE’s index masked modest increases in a handful of European markets, notably in Hamburg (+4.3%) and Nordic markets, such as Oslo, and declines in southern Europe and Ireland – reflecting the ongoing effects of the economic difficulties in the Eurozone. Overall, office rents across Europe increased 0.4% from a year ago………………………………………..Full Article: Source

The escalation of the eurozone crisis will widen the gap between a stronger British housing market in the south and a weaker market in the north, a think-tank has warned.
The Centre for Economics and Business Research predicted that while house prices would rise 2pc in the South East this year, and 2.4pc in London, prices would fall 2.7pc in the North East and 2.2pc in Scotland. Overall it expected prices to rise by 1pc in the UK, following a 1.5pc fall in 2011………………………………………..Full Article: Source

Rental level for prime offices remained stable in most major European markets in Q1 2012, with the CBRE EU-27 Prime Office Rent Index edging up by 0.1% during the period.
The stability of CBRE’s index masked modest increases in a handful of European markets, notably in Hamburg (+4.3%) and Nordic markets, such as Oslo, and declines in southern Europe and Ireland – reflecting the ongoing effects of the economic difficulties in the Eurozone. Overall, office rents across Europe increased 0.4% from a year ago………………………………………..Full Article: Source

Pan-European property funds recorded total returns at net asset value of just 0.1% in the first quarter of 2012, according to the IPD Pan-European Quarterly Property Fund Index. This resulted in a 12-month return to March 2012 of 2.1%; the lowest in nearly two years.
Although the underlying direct real estate returns were stronger, at 0.9% for the quarter and 5.9% for the last 12 months, they also represented a deterioration on previous quarters………………………………………..Full Article: Source

Total returns at the NAV level for pan European funds slowed to just 0.1% in the first quarter of 2012, resulting in a 12 month return to March of 2.1%, their lowest in nearly two years.
Although the underlying direct real estate returns were stronger, at 0.9% for the quarter and 5.9% for the last 12 months, they also represented a deterioration on previous quarters. This weakening of performance could have been expected given the Eurozone debt crisis and the slowing of economic growth, and is in sharp contrast to the stronger performance in the US and Australia………………………………………..Full Article: Source

As the eurozone lurches from crisis to crisis and Greece teeters on the brink of default and exit from the euro, the number of wealthy European property buyers in London has surged. Greeks, Italians, Spaniards and even the French are desperate to convert their euros into bricks and mortar in the capital.
There are three main safe havens now, said David Adams, managing director of Mayfair estate agents John Taylor – gold, the Swiss franc and London property………………………………………..Full Article: Source

The cumulative weight of European property stocks in the global listed property sector - as represented in the GPR 250 Index - has plunged to 14% from 21% in the past four years, according to Global Property Research.
From 1 January 2008 to 31 December 2011, the number of European stocks included in the GPR 250 Index fell to 54 from 70. This decrease is largely due to the exclusion of less liquid stocks, GPR said………………………………………..Full Article: Source

The property market in Bulgaria can offer prospective home buyers excellent value for money and a very reasonable cost of living, according to an expert on the Eastern European country.
Paul Watchorn, director at thebulgarianpropertyfinder.co.uk, said the country remains relatively inexpensive compared to the UK, something which is encouraging many people to make international money transfers to Bulgaria with the aim of relocating there………………………………………..Full Article: Source

An increasing supply of good quality office property coming to the market and strong demand from investors meant that the office sector accounted for half of the European commercial property investment in the first quarter of 2012 (Q1 2012), according to the latest research by CBRE.
The office sector was dominant in Q1 2012, seeing EUR 12 bn of investment and accounting for 50% of the total market. However, despite the level of transactions, the office sector saw a rise in the average prime yield of 6 bps to 5.69%………………………………………..Full Article: Source

An increasing supply of good quality office property coming to the market and strong demand from investors meant that the office sector accounted for half of the European commercial property investment in the first quarter of 2012 (Q1 2012), according to the latest research by CBRE.
The office sector was dominant in Q1 2012, seeing EUR 12 bn of investment and accounting for 50% of the total market………………………………………..Full Article: Source

According to the latest research by global property advisor CBRE Group, an increasing supply of good quality office property coming to the market and strong demand from investors meant that the office sector accounted for half of the European commercial property investment in the first quarter of 2012 (Q1 2012).
The office sector was dominant in Q1 2012, seeing €12 billion (USD $15 billion) of investment and accounting for 50% of the total market………………………………………..Full Article: Source

Worsening political and economic turmoil in the euro zone has knocked investment in Europe’s shopping centres and stores to its lowest level since the collapse of Lehman Brothers investment bank in 2008, data showed.
European retail property investment fell to 3.69 billion british pounds ($5.9 billion) in the first quarter of 2012, down from 12.6 billion euros in the same period in 2011 and 9.3 billion euros in the previous quarter, research from property consultancy CBRE showed………………………………………..Full Article: Source